TELGI SCAM

BIOGRAPHY:Abdul Karim Telgi (born 1961), son of late Sharifabee Ladsaab Telgi (mother), is a convicted-counterfeiter from India. He earned money to the tune of several billion US dollars by printing counterfeit stamp paper in India. The scale of his operation and scam can only be matched by the stock market scam of the early 1990s in India done by late Big Bull Harshad Mehta and by the money-laundering scam of Hasan Ali Khan.

BIRTH & EARLY CAREER:Born to an employee of Indian Railways in 1961, Telgi was left to fend for himself at an early age after his father's death. He paid for his own education at Sarvodaya Vidyalaya, an English medium school, by selling fruit and vegetables on trains. He completed his B.Com from aBelgaum college. After this, he moved to Saudi Arabia. Seven years later, he returned to India and began to work as a travel agent.

ARREST:Telgi was arrested in 1991 by Mumbai police for fraud. During his subsequent prison sentence, he reportedly learned the art of forgery from an expert. He was released and, in 1994, acquired a stamp paper licence from the Government of India.

COUNTERFEITING CAREER:He began printing fake stamp paper. He appointed 300 people as agents who sold the fakes to bulk purchasers, including banks, FIs, insurance companies, and share-broking firms. His monthly profits have been estimated as being in the neighbourhood of Rs 202 crore (slightly more than US $40 million).The size of the scam was estimated to be more than 43,000 Cr Rupees. The Telgi case brought corruption in the Karnataka police force to light, causing a national scandal in India. A videotape emerged in September 2006 of Abdul Karim Telgi taking a Narco Analysis test. Under the influence of the supposed truth serum, Telgi is said to have blurted out the names of Nationalist Congress Party leaders Sharad Pawar and Chaggan Bhujbal. Pawar has never been publicly linked to the case, but was forced to go public with a denial.

On 17 January 2006, Telgi and several associates were sentenced to ten years' rigorous imprisonment. On June 28, 2007 Telgi was sentenced to rigorous imprisonment for 13 years and fined a whopping Rs 202 crore on various counts in one of the main cases of the scandal. Hours after Telgi pleaded guilty and repented his actions, Judge Chitra Bedi of a special court pronounced the quantum of punishment under various sections of the IPC and the Maharashtra Control of Organised Crimes Act. This is the harshest punishment given to Telgi in any of the fake stamp paper cases he has been convicted for so far in Maharashtra and Karnataka. Honorable Judge Chitra Bedi observed that she had taken a "lenient view" since Telgi, who is in judicial custody in Pune, had pleaded guilty and also because of his health. Telgi is HIV positive. Honorable Judge Chitra Bedi sentenced 42 other accused in the case, who too had pleaded guilty, to rigorous impriosnment for up to six years and imposed fines on them. CBI counsel Raja Thakare moved an application in the court seeking the confiscation of Telgi's property to recover the fine slapped on him. Telgi, who broke down earlier in the day while pleading guilty, thanked the judge for "giving him justice."

MOVIEFILM :Mudrank (The Stamp) is a film based on his life, though it has not yet been released as Telgi was unhappy with Mudrank. The movie-film is expected and will release soon. As of 2010, it has been reported by various sources that the film has been cancelled. Producer- Vishal srivastava. Pune.

ALLEGATIONS OF ATTEMPTS TO ELIMINATION BY POLICE:It has been alleged that Indian Police wants to eliminate Telgi. It is also alleged that Telgi contracted HIV/AIDS while in police custody.

ABDUL KARIM TELGI:He paid for his own education at Sarvodaya Vidyalaya by selling fruits and vegetables on trains. He is today famous (or infamous) for being he man behind one of biggest scams! The Telgi case is another big scam that rocked India. The fake stamp racket involving Abdul Karim Telgi was exposed in 2000. The loss is estimated to be Rs 171.33 crore (Rs 1.71 billion), it was initially pegged to be Rs 30,000 crore (Rs 300 bilion), which was later clarified by the CBI as an exaggerated figure.In 1994, Abdul Karim Telgi acquired a stamp paper license from the Indian government and began printing fake stamp papers.

Telgi bribed to get into the government security press in Nashik and bought special machines to print fake stamp papers. Telgi's networked spread across 13 states involving 176 offices, 1,000 employees and 123 bank accounts in 18 cities.

SOME OF THE IMPORTANT DATE RELATED TELGI SCAM REPORT:AUG 9, 2000: Bangalore city police arrest two persons on charge of being in possession

of fake stamp and stamp paper. Investigations led to seizure of fake stamps and stamp papers valued at Rs9.92 crore. Telgi·s name surfaces in investigation.
NOV 2001: Telgi arrested in Ajmer, Rajasthan by Bangalore city police team. He is lodged

in Bangalore central prison. Apparently with help of prison staff, Telgi continued to run his camp from jail.
JAN 2002: SM Krishna government constituted STAMPIT headed by R Sri Kumar, addition

director general of police with 11 years· CBI experience to probe the Telgi case.
JUNE 13, 2003: Assistant Inspector Dilip Kamat was arrested for providing facilities to

Telgi in police custody.
JULY 1, 2003: Sitting MLA Anil Gote from Dhule district of Maharashtra is arrested AUGUST 21, 2003: Senior Inspector Dattatrya Dhal of the Mumbai crime branch Unit IV

was arrested for aiding and abetting Telgi. Dhal was one of the investigating officers in the scam in Mumbai.Telgi·s lawyer Rasheed Kulkarni was also arrested by the Karnataka police in August for aiding and abetting his client in the scam.

SEPTEMBER 6, 2003: Krishna Yadav, former labour minister of Andhra Pradesh and

sitting MLA, is arrested.
OCTOBER 18, 2003: Assistant Commissioner of Police Gokul Bhagaji Patil of the state

intelligence department is arrested. Inspector Vashist Andale of Sahar airport and SubInspector Prabhakar Kakade of Nalasopara police station are also arrested.
NOVEMBER 7, 2003: Shridhar Vagal, joint commissioner of state intelligence

department, is arrested.
NOVEMBER 9, 2003: Sub-inspector Digamber V Jangale from Wagle Estate police

station of Thane and Assistant Inspector Leeladhar Nimade from Nashik police are arrested.
NOVEMBER 10, 2003: SIT nabs sub-inspector SR Dalvi attached to the Versova police

station for his alleged role in the fake stamp paper case.
DECEMBER 1, 2003: Former Mumbai police commissioner RS Sharma is arrested DECEMBER 2, 2003: Assistant Commissioner of Police RB Yenam of Navi Mumbai police

commissionerate is arrested for shielding Telgi.
DECEMBER 4, 2003: Retired Pune Assistant Commissioner of Police Mohammed Chand

Mulani is arrested.
DECEMBER 8, 2003: Former Deputy Superintendent of Stamps Babanrao Tukaram

Ranjane is arrested

DECEMBER 10, 2003: PN Jayasimha, former superintendent of Central Jail at

Parapana Agrahara and principal of Prison Training School in Mysore, and assistant jail superintendent Nanjappa are arrested
DECEMBER 20, 2003: Inspector Puran Singh, posted in the District Investigating Unit

(DIU) of South District, is arrested by the Economic Offences Wing (EOW) of the Delhi Police·s Crime Branch. Also Rehan Baig, brother of Karnataka Small Scale Industries Minister Roshan Baig, surrenders to STAMPIT
DECEMBER 24, 2003: API GW Jhadav of the Mumbai police is arrested JANUARY 5, 2004: Stamp Superintendent Ramdas Potale is arrested JANUARY 7, 2004: Deputy Commissioner of Police Pradeep Sawant is arrested for

shielding Telgi.
JANUARY 24, 2004: Assistant Commissioner of Police Sangram Singh; Inspector, City

Crime Branch, Val Basha; Sub-Inspector VA Khan; and Deputy Superintendent of Police KM Muddaiah are suspended by Karnataka government.
FEBRUARY 2, 2004: Mumbai police inspector A Sonwalkar is arrested by SIT

QUESTIONNARIE :-

1. WHAT IS BUSINESS ETHICS ? 2. WHY IS BUSINESS ETHICS NECESSARY ? 3. WHAT IS UNETHICAL IN ABOVE CASE ? 4. WHO IS RESPONSIBLE FOR CONDUCTING UNETHICAL BUSINESS GOVERNMENT OR PUBLIC ? 5. SHOULD BUSINESS ETHICS SUBJECT INCLUDED IN SYLLABUS ?

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